How much to buy a house in South Korea?

Authored by the expert who managed and guided the team behind the South Korea Property Pack

Everything you need to know before buying real estate is included in our South Korea Property Pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in South Korea. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the South Korean real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Seoul, Busan, and Incheon. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What type of property should you buy in South Korea?

Apartments dominate South Korea's urban property market and represent the most liquid investment option.

The four main property types available are apartments (아파트), which are high-rise condominium-style units most common in urban areas; villas (빌라), which are low-rise buildings of 2-5 floors offering more space and privacy; single houses (주택), standalone homes typically found in suburban or rural areas; and officetels, mixed-use properties serving both residential and office purposes popular with professionals.

Apartments account for over 60% of housing stock in major cities like Seoul and Busan. They offer the best resale value and rental demand, especially in prime locations. New apartment complexes often include amenities like gyms, security systems, and parking facilities. Apartments also benefit from stronger price appreciation in desirable neighborhoods.

Villas provide more living space at lower prices but have limited resale liquidity compared to apartments. Single houses offer maximum privacy and space but require higher maintenance costs and are mainly suitable for long-term residence rather than investment.

It's something we develop in our South Korea property pack.

Which area in South Korea offers the best value for property investment?

Seoul remains the most expensive but also most stable market, while emerging areas in Gyeonggi Province offer better value propositions.

Area Category	Locations	Average Price Range	Investment Potential
Premium Seoul	Gangnam, Seocho, Yongsan	KRW 15-18 million/sqm	Stable, low risk
Emerging Seoul	Mapo, Seongsu, Hongdae	KRW 10-15 million/sqm	High growth potential
Seoul Suburbs	Nowon, Dobong, Eunpyeong	KRW 8-12 million/sqm	Moderate growth
Gyeonggi Province	Suwon, Seongnam, Yongin	KRW 5-8 million/sqm	Good value, growth potential
Major Regional Cities	Busan, Incheon, Daejeon	KRW 3-7 million/sqm	Budget-friendly, stable
Secondary Cities	Daegu, Gwangju, Ulsan	KRW 3-5 million/sqm	Lower prices, limited growth
Rural Areas	Countryside, small towns	KRW 2-4 million/sqm	Affordable, declining demand

What surface area should you target for your South Korean property?

Property sizes in South Korea vary significantly based on budget and intended use, with most urban apartments ranging from 60-120 sqm for families.

Government minimum standards suggest 14 sqm for singles, 26 sqm for couples, and 36+ sqm for families. However, these represent absolute minimums rather than comfortable living standards. Studio apartments typically range from 15-30 sqm and are popular with young professionals and students.

Family apartments in Seoul average 84 sqm (3-bedroom) and cost around KRW 1.1 billion. Larger apartments of 120+ sqm in premium locations can exceed KRW 2 billion. In regional cities, you can find similar-sized properties for 30-50% less than Seoul prices.

Consider that larger properties generally offer better rental yields per sqm but require higher initial investment. Properties under 60 sqm may face resale challenges as family preferences shift toward larger homes. Optimal investment size is typically 60-100 sqm, balancing affordability with broad market appeal.

What is the total budget needed including all fees and taxes?

Total property acquisition costs in South Korea range from 3.6% to 8.1% above the purchase price, with some cases reaching 14% when including selling costs.

The acquisition tax varies from 1-3% for standard purchases but can reach 12% for luxury properties or multiple home purchases. Legal and registration fees add another 0.5-1% of the property value. Real estate agent commissions typically cost 0.4-0.9% of the purchase price.

Stamp duty ranges from KRW 50,000 to KRW 350,000 depending on property value. Moving and utility connection fees add approximately KRW 2-5 million. Property insurance and initial maintenance deposits can cost another KRW 3-8 million for apartments.

For a KRW 800 million apartment, expect total additional costs of KRW 50-80 million. Budget an extra 6-10% above your target purchase price to cover all acquisition expenses. Foreign buyers may face additional documentation and translation costs of KRW 1-3 million.

What are the ongoing costs of owning property in South Korea?

Monthly maintenance costs for apartments range from KRW 100,000 to KRW 400,000, with premium buildings charging significantly more.

1. **Monthly maintenance fees**: Cover building upkeep, security, utilities, and amenities2. **Annual property tax**: Ranges from 0.1-0.4% for single properties, up to 5% for luxury or multiple properties3. **Building insurance**: Typically KRW 200,000-500,000 annually4. **Utility connections**: Gas, electricity, water, and internet setup costs5. **Property management**: If renting out, professional management costs 5-10% of rental income

Premium apartments in Gangnam can charge KRW 600,000+ monthly for maintenance due to high-end facilities like concierge services, premium gyms, and parking. Older buildings typically charge KRW 100,000-200,000 monthly. These fees are unavoidable regardless of occupancy.

Property taxes increase substantially for owners of multiple properties or luxury homes exceeding KRW 1.5 billion in value. Factor in KRW 3-8 million annually for total carrying costs on a typical Seoul apartment.

How much can you borrow and what are current mortgage rates?

Mortgage availability for property purchases is limited to 40-70% loan-to-value ratios, with interest rates ranging from 3.98-4.2% for Korean residents and 5-7% for foreigners.

Korean banks typically approve mortgages up to 70% of property value for first-time buyers, but this drops to 40-50% in overheated areas like Gangnam. Foreign buyers face stricter requirements including proof of income, visa status, and often need larger down payments of 50-60%.

As of September 2025, mortgage interest rates for Korean citizens range from 3.98% to 4.2% for standard loans. Foreign buyers typically pay 1-3 percentage points higher, with rates of 5-7% common. Loan terms usually extend 20-30 years with some banks offering up to 40-year terms.

Banks require minimum income of 3-4 times annual mortgage payments and comprehensive documentation. Processing times range 2-6 weeks. Some banks restrict foreigner lending to specific visa categories or require local guarantors.

It's something we develop in our South Korea property pack.

Should you live in the property or rent it out?

Living in your South Korean property makes financial sense in expensive areas like Seoul where rental costs are high, while renting out works better for investment properties in secondary cities.

Owner-occupation in Seoul saves KRW 1-3 million monthly in rental costs while building equity through property appreciation. Seoul properties have gained 3.6% in value during 2024-25, providing substantial capital gains for residents. However, the high purchase costs mean significant capital is tied up.

Rental properties in Seoul generate yields of only 1.5-2%, making cash flow negative after mortgage payments and expenses. Regional cities like Busan and Daegu offer slightly better yields of 2-3% but with lower appreciation potential.

Consider owner-occupation if you plan to stay 5+ years and can afford the high purchase costs. Choose rental investment for diversification or if you prefer liquidity, but expect negative cash flow initially in prime locations.

What's the difference between short-term and long-term rental returns?

Short-term rentals offer higher per-night rates but involve intensive management, while long-term rentals provide stable income through South Korea's unique Jeonse system.

Aspect	Short-term Rental	Long-term Rental (Jeonse)	Long-term Rental (Wolse)
Returns	Higher per night, variable	Lower but stable	Monthly rent income
Management	Intensive daily management	Minimal, tenant self-manages	Moderate tenant interaction
Costs	High turnover, cleaning fees	Tenant pays most utilities	Some maintenance shared
Regulation	Heavy restrictions in Seoul	Traditional, well-established	Growing in popularity
Cash Flow	Daily income but irregular	Large deposit, no monthly rent	Regular monthly payments
Vacancy Risk	High seasonal variation	Very low, 2-year contracts	Low with good tenants
Suitable For	Tourist areas, premium locations	Traditional investment approach	Modern rental preference

What is the potential for property resale at higher prices?

South Korean property shows strong resale potential in Seoul and major cities, with price appreciation of 2-5% annually expected over the next five years.

Seoul properties have doubled in value in some districts since 2020, driven by limited land supply and urbanization trends. Premium areas like Gangnam, Seocho, and Yongsan show consistent appreciation even during market downturns. Properties near new GTX subway lines and redevelopment zones offer higher growth potential.

Regional cities like Busan and Incheon show more modest appreciation of 1-3% annually but offer better entry prices. Secondary cities face demographic challenges with potential stagnation or decline post-2035 as South Korea's population peaks and urbanization concentrates in major metropolitan areas.

Optimal resale properties include new apartments in emerging neighborhoods, properties near transportation hubs, and units in districts undergoing urban renewal. Avoid older buildings without redevelopment potential and properties in declining rural areas.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Korea versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are specific purchase price examples in different areas?

Property prices vary dramatically across South Korea, with specific examples showing the range from affordable regional options to premium Seoul locations.

1. **Seoul Gangnam 84sqm apartment**: KRW 2.1 billion ($1.6 million)2. **Seoul Mapo 70sqm villa**: KRW 900 million ($680,000) 3. **Busan Haeundae 90sqm apartment**: KRW 550 million ($415,000)4. **Incheon 75sqm new apartment**: KRW 480 million ($365,000)5. **Daegu 100sqm house**: KRW 320 million ($240,000)

Premium new apartments in Seoul's Yongsan district cost KRW 18-20 million per sqm, while similar quality properties in Gyeonggi Province cities like Suwon cost KRW 6-8 million per sqm. The price differential reflects transportation access, amenities, and employment opportunities.

Luxury penthouses in Gangnam can exceed KRW 5 billion for 200+ sqm units. In contrast, rural properties in provinces like Jeolla offer detached houses for under KRW 200 million. Consider location accessibility and long-term demographic trends when evaluating these price differences.

Which areas are most expensive and which offer emerging opportunities?

Seoul's Gangnam, Seocho, and Songpa districts represent the most expensive markets, while emerging opportunities exist in redevelopment zones and Gyeonggi Province cities.

Most expensive areas command KRW 15-20 million per sqm and include Gangnam's luxury apartment complexes, Seocho's new developments near Gangnam Station, and Yongsan's International Business District. These areas offer premium amenities, excellent schools, and strong transportation networks but require substantial capital investment.

Emerging opportunities include Mapo's Hongdae area undergoing gentrification, Seongsu-dong's industrial-to-residential conversion, and Yongsan's ongoing urban redevelopment. Gyeonggi Province cities like Bundang, Ilsan, and areas along new GTX subway lines offer growth potential at lower entry prices.

Budget-friendly options with potential include older neighborhoods scheduled for redevelopment, areas near planned transportation improvements, and secondary cities with university or technology industry presence. Avoid declining industrial areas and regions with shrinking populations.

It's something we develop in our South Korea property pack.

How have property prices changed and what are future forecasts?

South Korean property prices increased 3.6% in Seoul during 2024-25, with forecasts showing 2-5% annual growth through 2030 before potential demographic headwinds emerge.

Over the past year, Seoul saw steady appreciation while regional cities like Busan remained flat or declined slightly. The national average increased just 0.3%, highlighting the concentration of growth in major metropolitan areas. Government cooling measures have moderated but not eliminated price growth in overheated markets.

Five-year trends show dramatic increases since 2020, with some Seoul districts more than doubling in value. This growth reflects ultra-low interest rates, limited housing supply, and urbanization trends. However, price growth has moderated from peak levels in 2021-2022.

Future forecasts suggest Seoul will continue outperforming with 2-5% annual appreciation through 2030, driven by employment concentration and limited developable land. Regional cities may see 1-2% growth, while rural areas face potential stagnation or decline as South Korea's population peaks around 2035. Long-term investors should focus on major metropolitan areas for sustained appreciation.

How do South Korean property prices compare to other major Asian cities?

Central Seoul now ranks among Asia's most expensive property markets, with prices rivaling Hong Kong and exceeding Tokyo in prime districts.

As of September 2025, central Seoul averages around $20,000 per sqm, approaching Hong Kong's ultra-luxury areas at $28,000+ per sqm. Seoul significantly exceeds Tokyo's $10,000-16,000 per sqm for comparable quality and location. Singapore's prime areas cost $14,000-18,000 per sqm, placing Seoul in the upper tier of Asian property markets.

This price positioning reflects South Korea's economic development, tight land supply constraints, and speculative investment demand. Unlike some other Asian cities, Seoul's prices are driven by domestic rather than foreign investment, making the market more stable but also more expensive for international buyers.

The comparison shows Seoul offers similar lifestyle quality to other major Asian cities but at premium pricing. Consider this when evaluating investment returns and affordability compared to alternative locations in the region.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Different Housing Types in Korea
2. Average Apartment Price per Sqm South Korea
3. South Korea Real Estate Trends
4. Seoul Apartment Selling Price by Area
5. Housing Standards Study
6. Average House Price South Korea
7. House Price South Korea
8. South Korea Mortgage Interest Rate
9. South Korea Price Change 5 Years
10. Property Investment Seoul